United Arab Emirates Fruits and Vegetables Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

United Arab Emirates Fruits and Vegetables Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The United Arab Emirates is the second-highest consumer of food in GCC. ​The UAE fruits and vegetables market was valued at USD 3,731million in 2018, and it is projected to grow at a CAGR of 9.93% during the forecast period (2020-2025). The drivers identified in this market are favorable government policies, an increase in consumption of fruits and vegetables due to health consciousness, and strong distribution and retail network. The country is witnessing an exceptional exploitation of its agricultural potential. The growth within fruits and vegetables is likely to be driven by the introduction of new products (like multi-vitamin juice) and improvements in packaging, which gives rise to extended product life cycles.

Key Market TrendsIncreasing Consumption of Fruits and Vegetables

The United Arab Emirates is the second-highest consumer of food in GCC. Higher disposable income, the rising level of education and health awareness among a larger section of the population tend to make consumers shift from a carbohydrate-based staple diet to a nutrition-rich diet. ​Due to the rising awareness regarding health issues, the people of the United Arab Emirates are preferring healthier and nutritious food with high quality and fair prices.​ With the increasing availability of several varieties of fruits and vegetables, there is a change in diet with remarkably high consumption of fruits and vegetables that is driving the fruits and vegetable market.

Favorable Government Policies is Encouraging the Production

The UAE government is providing subsidies in every aspect of farming. ​The government has announced an agricultural fund, started by the Abu Dhabi Farmers Service Centre (ADFSC). This fund will help farmers by spending nearly USD 6 million per year to support and finance modern farming techniques. The fund has its primary focus on Hydroponic programs and is sure to cover up half of the total cost of production for all the farmers.​Dubai Municipality signed an MoU with Plantfair in 2015. The primary objective of the MoU was consolidating Dubai’s position as the regional hub for trading fresh fruits and vegetables so as to turn United Arab Emirates into a global business center for fruits and vegetables.​The Ministry of Climate Change and Environment, United Arab Emirates, has launched a program to encourage local farming. The ministry has also provided farming equipment, including tools for organic and hydroponic farming at half the price, benefitting local production of zucchini, cucumbers, tomatoes, and eggplants becoming prevalent.​

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